Clean Edge Razor
Splitting Hairs in Product Positioning
Paramount’s newest non-disposable razor, Clean Edge, has brought a new hope for the company whose other products are either on the mature stage of product life cycle or on the declining stage. Clean Edge’s improved design provides superior performance and hence the top management is extremely excited. They need to come up with a marketing strategy including product positioning, brand name & marketing budget allocation for the upcoming launch. Another area of concern is how to deal with the cannibalization effect on the other range of non-disposable razors sold by Paramount. It is very important to come up with a suitable strategy to make the product successful in the market. Through a proper economic analysis considering the razor market and the facts available, we have come up with a conclusion that Paramount should position Clean Edge in the Niche Segment. Statement of the Problems
Paramount needs to come up with a marketing strategy to effectively position its new line of technologically advanced non-disposable razors. Over the last five year years the industry has seen major advancements in the male grooming industry with the entry of new formidable players turning on the heat for the existing market leaders. Some of the major highlights include * Male specific grooming products seem to have outpaced the growth in women’s beauty market and have become more mainstream * In the male grooming product category, the replacement cycle of razors and cartridges have shortened * Advertising expenditures in the category have been rising faster than retail market sales * The demand has had a cumulative effect on technology as newer advanced products have hit the market resulting in approximately 5% growth per year from 2007 to 2010 * Super-premium segment has experienced significant growth with numerous product innovations By 2009, Paramount had already...
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